3 Small Auto Stocks that Look Interesting Now (2021)

VST Tillers was down and out in 2020.

But it’s made a remarkable.

What does the future hold?

A. VST Tillers Tractors

1. Price

Market Cap

  • 4 Jan, 2021 = ₹1,727 crores

Price Chart

  • High (27 Apr, 2018): ₹3,045
  • Low in Covid crash: ₹588
  • Latest (4 Jan, 2021): ₹2,008. That’s up 230%+

2. Value

Capital

  • Book value (BV, 30 Sep, 2020) = ₹625 crores1VST Tillers Tractors balance sheet on Screener
  • Price to book (P/BV) ratio = 1,700/625 = 2.7x

Debt

  • Debt = 0
  • But, other liabilities = ₹124 crores. Need to understand what this is.

Performance

  • Profit after tax (PAT) was ₹29 crores in FY09. Went up to ₹112 crores in FY18. But crashed thereafter.2VST Tillers Tractors profit & loss on Screener
  • Return on Capital Employed (ROCE) = Was 51% in FY09. Has been steadily declining since. Was 14% in FY19.3VST Tillers Tractors ratios on Screener
₹ Cr.09101112131415161718192021H1
BV92127164205245313364420500597590577625
PAT294246504983707483112461847
ROCE%51534839314530292426146

Note: This needs further study. Hence, the first leading question for this stock is: “Why did PAT & ROCE fall this way? And will they go back up?”

3. History

  • 1911: The VST group started by V. S. Thiruvengadaswamy Mudaliar.4Website of VST Tillers Tractors
  • 1968: VST Tillers Tractor was incorporated.

4. Latest Situation

Disclaimer

As on the date of this update, I don’t hold any shares of VST Tillers Tractors.

I’ve made many investment mistakes in the past. And will make in the future.

So, please use this case study for your information purposes only. Kindly don’t treat it as a research recommendation or as investment advice.

References

1VST Tillers Tractors balance sheet on Screener
2VST Tillers Tractors profit & loss on Screener
3VST Tillers Tractors ratios on Screener
4Website of VST Tillers Tractors
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